Obama and oil co. subsidies

OK, how do we feel about the oil subsidies being paid from our taxes to the oil companies who have record profits? I noticed that many are against any type of tax credit, assistance, even unemployment, but how about XOM receiving $billions in assistance, subsidies, use whatever word you like.

I think it sucks. We helped Detroit because they needed it, but this is akin to just giving Bill Gates an extra few $billion, 'just because' - weird to me.

Im a rightie, so this may surprise you, but i think all subsidies should end.

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I tend to agree that subsidies should end or at least only exist for certain periods and for specific reasons. I don't know enough of why oil companies get subsidies to say they don't need them or they do need them.

Some countries subsidize certain industries in order to drive other countries out of the business. It nearly worked with the U.S. steel industry when the Chinese started dumping cheap steel in the U.S.

So, it depends on fair trade practices. We can't just sit back and let other countries drive us out of business in one industry after another. But any action on subsidies or tariffs needs to be well thought out and temporary with international considerations.

A different example is farm subsidies. The intent was to pay farmers to idle some land so over production wouldn't suppress prices to the point that everyone lost money. Although farmers can change crops to go were the market is, it sometimes take years to change the land to support a different crop at a cost of years of family business losses.

The answers on subsidies are not always black and white. Without understanding why a subsidy is in place I don't think anyone can make an informed judgement to remove it or not.

Including Gov. Christies tax credits where he is paying back money that was never even earned or taxed? Just clarifying.

All grants to colleges? All medical research gov't grants? Even the guy with the question marks on his shirt selling a book about how to get gov't grants?

I'm for using some tax money to help people, and even to help new science, human genome research for example. Space programs, GI bill is a good one, right off the top of my head.

But to pay super rich oil companies, who then pay themselves large bonuses, well, it's sort of like the bankers who were bailed out paying themselves big bonuses. If I was paid via a bailout, and then paid myself just for being there, well, I would feel pretty weird about taking any money.

No more tax subsidies or exemptions for churches too? Non-profits?

Not really trying to pick and choose, but, well, maybe some types of pick and choose. Just doesn't make sense with oil companies right now.

I tend to agree that subsidies should end or at least only exist for certain periods and for specific reasons. I don't know enough of why oil companies get subsidies to say they don't need them or they do need them.

Some countries subsidize certain industries in order to drive other countries out of the business. It nearly worked with the U.S. steel industry when the Chinese started dumping cheap steel in the U.S.

So, it depends on fair trade practices. We can't just sit back and let other countries drive us out of business in one industry after another. But any action on subsidies or tariffs needs to be well thought out and temporary with international considerations.

A different example is farm subsidies. The intent was to pay farmers to idle some land so over production wouldn't suppress prices to the point that everyone lost money. Although farmers can change crops to go were the market is, it sometimes take years to change the land to support a different crop at a cost of years of family business losses.

The answers on subsidies are not always black and white. Without understanding why a subsidy is in place I don't think anyone can make an informed judgement to remove it or not.

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Maybe you were typing at the same time. I agree that there are some good subsidies and some pretty lame ones, like the oil companies at this point in time.

Corporate Oligarchy (Corporatocracy)
Corporate oligarchy is a form of power, governmental or operational, where such power effectively rests with a small, elite group of inside individuals, sometimes from a small group of educational institutions, or influential economic entities or devices, such as banks, commercial entities that act in complicity with, or at the whim of the oligarchy, often with little or no regard for constitutionally protected prerogative.

I just want to point this out to you Cgroupman, did you know that the average price of gas in Canada is about 1.20$/ Gallon higher in Canada? Canada produces a large portion of the the oil the U.S. uses, and all of our own oil and we pay 25% more for gasoline at the pump, because the Canadian government notoriously hammer the shit out of the oil companies on taxes.

Dont get me wrong, I also want to see subsidies for oil companies end, but you Left wingers had better be prepared to pay an extra 1.20$ per Gallon every single time we gas up once the subsidies end.

You seem to be under the impression that there is going to be no cost once we end the subsidies. I just want to point out to you that if we end the subsidies (which i want to do) you can count on a 25% rise in the cost of Gasoline. It isnt like the oil companies are just going to accept a massive increase in their cost without passing it on to the consumer.

Quote from cgroupman:

Maybe you were typing at the same time. I agree that there are some good subsidies and some pretty lame ones, like the oil companies at this point in time.

I just want to point this out to you Cgroupman, did you know that the average price of gas in Canada is about 1.20$/ Gallon higher in Canada? Canada produces a large portion of the the U.S. uses, 25% more for gasoline at the pump, because the Canadian government notoriously hammer the shit out of the oil companies on taxes.

Dont get me wrong, I also want to see subsidies for oil companies end, but you Left wingers had better be prepared to pay an extra 1.20$ per Gallon every single time we gas up once the subsidies end.

You seem to be under the impression that there is going to be no cost once we end the subsidies. I just want to point out to you that if we end the subsidies (which i want to do) you can count on a 25% rise in the cost of Gasoline. It isnt like the oil companies are just hoarding cash, and they are just going to accept a massive increase in their cost without passing it on to the consumer.

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Or, as with the 'righties' desires for government, perhaps the oil companies can get by with lower profits to keep market share. Lower costs for government, good, right? Pay less to oil companies, but then they have to actually trim costs to continue to make money, not good? I say, good.

And, really, the left right thing when it comes to simple monetary policy has to come to an end sometime. I don't care if my CPA is a dem or a rep, as long as he can balance the books, and help me cut taxes.

If $billions of subsidies are just being returned to the shareholders via dividends, well, just not capitalism as learned it.